MILWAUKEE, Wis. (Legal Newsline) — The Oakland County, Mich., government employee retirement system is claiming a solar energy company, Generac, misled its investors.
Oakland County Voluntary Employees' Beneficiary Association and Oakland County Employees' Retirement System, individually and on behalf of all others similarly situated, filed a complaint Dec. 1 in the U.S. District Court for the Eastern District of Wisconsin against Generac Holdings Inc., Aaron Jagdfeld and York Ragen alleging violations of the Securities Exchange Act and other claims.
The plaintiffs allege in their class action that Generac and its senior executives concealed information from investors regarding a defective "SnapRS" component on the company's solar power products. Specifically, the plaintiffs allege that the SnapRS component would overheat, melt and start fires instead of doing what it was designed to do.
They claim that the defendants knew that the component, which was installed on thousands of homes, was defective and dangerous. The plaintiffs also claim several consumer complaints were filed with regulators regarding the defective SnapRS without Generac issuing warnings to investors or consumers.
They also allege the defendants misled investors about the company's financial conditions and about its dependence on "channel partners" to sell, service and install the solar battery systems. The plaintiffs allege that due to the defendants' actions, Generac stock shares declined by 8%..
The plaintiffs seek monetary relief, interest, trial by jury and all other just relief. They are represented by Tamar Kelber and Jerome Mohsen of Gass Turek LLC in Milwaukee.
U.S. District Court for the Eastern District of Wisconsin case number 2:22-CV-01436-BHL